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MAD

Mader GroupASX:MAD Stock Report

Market Cap

AU$408.0m

7D

-7.3%

1Y

102.0%

Updated

01 Dec, 2021

Data

Company Financials +
MAD fundamental analysis
Snowflake Score
Valuation2/6
Future Growth4/6
Past Performance4/6
Financial Health5/6
Dividends2/6

MAD Stock Overview

Mader Group Limited, a contracting company, provides specialized contract labor and support for the maintenance of heavy mobile equipment and fixed infrastructure in the resources sector in Australia and internationally.

Price History & Performance

Summary of all time highs, changes and price drops for Mader Group
Historical stock prices
Current Share PriceAU$2.04
52 Week HighAU$2.50
52 Week LowAU$0.83
Beta0.95
1 Month Change7.37%
3 Month Change75.86%
1 Year Change101.98%
3 Year Changen/a
5 Year Changen/a
Change since IPO78.95%

Recent News & Updates

Nov 06
Is Mader Group (ASX:MAD) A Risky Investment?

Is Mader Group (ASX:MAD) A Risky Investment?

Warren Buffett famously said, 'Volatility is far from synonymous with risk.' So it might be obvious that you need to...

Oct 25
Should You Investigate Mader Group Limited (ASX:MAD) At AU$1.62?

Should You Investigate Mader Group Limited (ASX:MAD) At AU$1.62?

Mader Group Limited ( ASX:MAD ), might not be a large cap stock, but it led the ASX gainers with a relatively large...

Shareholder Returns

MADAU Commercial ServicesAU Market
7D-7.3%-4.1%-1.9%
1Y102.0%-0.1%11.7%

Return vs Industry: MAD exceeded the Australian Commercial Services industry which returned -0.1% over the past year.

Return vs Market: MAD exceeded the Australian Market which returned 11.7% over the past year.

Price Volatility

Is MAD's price volatile compared to industry and market?
MAD volatility
MAD Average Weekly Movement6.9%
Commercial Services Industry Average Movement7.4%
Market Average Movement8.3%
10% most volatile stocks in AU Market15.9%
10% least volatile stocks in AU Market3.6%

Stable Share Price: MAD is not significantly more volatile than the rest of Australian stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: MAD's weekly volatility (7%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
20051,600Justin Nuichhttps://www.madergroup.com.au

Mader Group Limited, a contracting company, provides specialized contract labor and support for the maintenance of heavy mobile equipment and fixed infrastructure in the resources sector in Australia and internationally. It offers auto and HV electricians, drill support team, clean team, rapid response teams, rostered support, shutdown teams, specialized tool hire, training and mentoring, and diggers support teams, as well as labor for component exchange, boilermaker and line boring, field support, fixed plant support, trade upgrade program, rail maintenance, and workshops. The company was founded in 2005 and is headquartered in Perth, Australia.

Mader Group Fundamentals Summary

How do Mader Group's earnings and revenue compare to its market cap?
MAD fundamental statistics
Market CapAU$408.00m
Earnings (TTM)AU$19.34m
Revenue (TTM)AU$304.30m

21.1x

P/E Ratio

1.3x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
MAD income statement (TTM)
RevenueAU$304.30m
Cost of RevenueAU$245.93m
Gross ProfitAU$58.38m
ExpensesAU$39.03m
EarningsAU$19.34m

Dividends

1.5%

Current Dividend Yield

31%

Payout Ratio

Valuation

Is Mader Group undervalued compared to its fair value and its price relative to the market?

36.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: MAD (A$2.04) is trading below our estimate of fair value (A$3.19)

Significantly Below Fair Value: MAD is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: MAD is poor value based on its PE Ratio (21.1x) compared to the Global Commercial Services industry average (20.6x).

PE vs Market: MAD is poor value based on its PE Ratio (21.1x) compared to the Australian market (12.6x).


Price to Earnings Growth Ratio

PEG Ratio: MAD is poor value based on its PEG Ratio (1.2x)


Price to Book Ratio

PB vs Industry: MAD is overvalued based on its PB Ratio (6.7x) compared to the XX Commercial Services industry average (1.9x).


Future Growth

How is Mader Group forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

17.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MAD's forecast earnings growth (17.3% per year) is above the savings rate (1.9%).

Earnings vs Market: MAD's earnings (17.3% per year) are forecast to grow faster than the Australian market (11.8% per year).

High Growth Earnings: MAD's earnings are forecast to grow, but not significantly.

Revenue vs Market: MAD's revenue (13.6% per year) is forecast to grow faster than the Australian market (5.2% per year).

High Growth Revenue: MAD's revenue (13.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: MAD's Return on Equity is forecast to be high in 3 years time (27%)


Past Performance

How has Mader Group performed over the past 5 years?

25.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MAD has high quality earnings.

Growing Profit Margin: MAD's current net profit margins (6.4%) are lower than last year (6.4%).


Past Earnings Growth Analysis

Earnings Trend: MAD's earnings have grown significantly by 25.6% per year over the past 5 years.

Accelerating Growth: MAD's earnings growth over the past year (10.5%) is below its 5-year average (25.6% per year).

Earnings vs Industry: MAD earnings growth over the past year (10.5%) exceeded the Commercial Services industry 7.9%.


Return on Equity

High ROE: MAD's Return on Equity (31.9%) is considered high.


Financial Health

How is Mader Group's financial position?


Financial Position Analysis

Short Term Liabilities: MAD's short term assets (A$72.0M) exceed its short term liabilities (A$47.3M).

Long Term Liabilities: MAD's short term assets (A$72.0M) exceed its long term liabilities (A$14.5M).


Debt to Equity History and Analysis

Debt Level: MAD's net debt to equity ratio (39.5%) is considered satisfactory.

Reducing Debt: MAD's debt to equity ratio has increased from 7.3% to 44.8% over the past 5 years.

Debt Coverage: MAD's debt is well covered by operating cash flow (59.5%).

Interest Coverage: MAD's interest payments on its debt are well covered by EBIT (23.5x coverage).


Balance Sheet


Dividend

What is Mader Group current dividend yield, its reliability and sustainability?

1.47%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: MAD's dividend (1.47%) isn’t notable compared to the bottom 25% of dividend payers in the Australian market (2.3%).

High Dividend: MAD's dividend (1.47%) is low compared to the top 25% of dividend payers in the Australian market (5.59%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, MAD has been paying a dividend for less than 10 years.

Growing Dividend: MAD has only been paying a dividend for 2 years, and since then payments have not increased.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (31%), MAD's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: MAD's dividends in 3 years are forecast to be well covered by earnings (35.3% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.1yrs

Average management tenure


CEO

Justin Nuich

0.92

Tenure

AU$683,229

Compensation

Mr. Justin Nuich, MBA, GRAD DIP maintenance management, is the Chief Executive Officer at Mader Group Limited since January 28, 2021 and serves as its Executive Director since September 2021 and served as...


CEO Compensation Analysis

Compensation vs Market: Justin's total compensation ($USD484.77K) is about average for companies of similar size in the Australian market ($USD544.14K).

Compensation vs Earnings: Justin's compensation has increased by more than 20% in the past year.


Leadership Team

Experienced Management: MAD's management team is not considered experienced ( 1.1 years average tenure), which suggests a new team.


Board Members

Experienced Board: MAD's board of directors are not considered experienced ( 2.9 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Mader Group Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Mader Group Limited
  • Ticker: MAD
  • Exchange: ASX
  • Founded: 2005
  • Industry: Diversified Support Services
  • Sector: Commercial Services
  • Market Cap: AU$408.000m
  • Shares outstanding: 200.00m
  • Website: https://www.madergroup.com.au

Number of Employees


Location

  • Mader Group Limited
  • Hkew Alpha Building
  • Suite A1
  • Perth
  • Western Australia
  • 6105
  • Australia

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/12/01 15:56
End of Day Share Price2021/12/01 00:00
Earnings2021/06/30
Annual Earnings2021/06/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.